Martin Lewis: Confused about the ‘two-child benefit cap’ - and what it really means?

[@matthewcook9404]

The general public is ( deliberately in my opinion - for purely political purposes ) misled, misinformed and confused on this and many other issues by our media. Thank you for your work clarifying this “story”.

[@EdmundBaileyUK]

It’s absolutely crucial that this is understood as so many people don’t know about it. 👍👍

[@Millennial_Mike]

I hate to sound callous... but I think the cap is pretty fair. Getting rid of it won't fix the issues... we need to create meaningful introductory incomes for those on getting into work. If we actually had an economy that meant those on the lower end of pay (working full time) were still actually well off enough to comfortably afford life's essentials etc, then the whole concept of welfare would become more and more redundant. Right now, someone over 21 in a job like Tesco/Aldi working full time 40 hours a week , 56 weeks a year (with 28 days paid leave) would be on £25k - £27k gross. That's seriously low pay for that amount of work. Especially once you factor in child care etc... Reality is, most wouldn't be on 40 hours a week... more likely 15 - 30 hours a week... so closer to the £20k mark Of course the problem is, as soon as the Living wage is increased, other skilled areas of labour force want their income higher etc... and then the real value of higher wages decreases so you end up with salaries that were considered good 10 years ago suddenly being the new minimum wage.

[@mystation5707]

There’s only 52 weeks in a year . Not 56!

[@wolvesaywe1155]

Any news on bringing down the standing charge?

[@bushmonster1702]

Fat chance. Greed is allowed to manifest and grow.

[@TheSammy2010]

Where would we be without you. They don’t teach any of this (and any other benefits and taxes)

[@paul_my_plumbs_uk]

The establishment doesn't want us to know 😂😂

[@ScreamingEagle101st]

As a single dad why should I be poor while the mother gets even more benefits and lives a life of luxury ??? Explain

[@skyrimnpchostile3572]

Have you any proof of this fantasy life of luxury?

[@engima3196]

He needs to talk about the DWP's upcoming rules.

[@suemsearch]

Thank you for explaining this. I had assumed there was no child benefit for third or subsequent children regardless of whether the patent received universal credit or not. So, there is a benefit provided for each child from taxation unless one patent is a high earner, when it is reclaimed via the tax system. It is only children in families receiving UC that are implicated. I need to think this through as it is different to what the media and politicians have been implying.

[@mystation5707]

It isn’t necessarily a 2 child benefit cap (ie no benefits for more than 2 children) as even for families with only 2 children money is capped.

[@PrinceRules64]

In my head I'm imagining a chart that lays this out visually. Though it would require many simplifications, it could plot combined child benefits received against relevant household income (probably doninant earner). There would be a separate line representing 1 child, 2, 3 and 4. You could then see at low earnings how much is given in benefits for each number of children, and see how this tapers as income goes up. Child Benefit would be a sort of underlying amount, while the two child limit on universal credit would have a clear effect on the 3+ children lines, and finally the benefit cap (I would chart outside of London for broader relevance) would be a clear cut off on one end of the chart. Personal income isn't relevant on the surface of it but would be the only way to estimate a person's proximity to the overall benefit cap, since the two-children amount for universal credit is about a third of the cap as far as I can tell. At 2-4 kids it seems you wouldn't hit the cap unless you have a large amount in other benefits (though there are many). So obviously an approximation for the mix of benefits for low earners would be needed. A simiplification would probably be wise for the sake of not preventing an already complex calculation reaching a result.

[@PrinceRules64]

As an aside, it would be even better if you could toggle between the parallel totals view for 1-4 children, and have an alternative view that shows the breakdown of the calculation for a specific number of children.

[@hexboxx735]

Legend

[@wendywoohaslam485]

Thank you, Martin! 😊

[@Sam-lq2jh]

Scrap all the benefits. If you can't afford the kid don't have one. Other people should not have to pay for your mistakes.

[@Unknown_336-y2g]

we need to talk about how child tax credit and working tax credit is being pushed into universal credit, its been stressful and unhelpful to families.Parents are being told to work more hours or the universal claim would be closed???

[@misslanapaulford]

It should DEFINITELY be keep at a two child minimum. It is NOT the government responsibility to give you a endless supply of money because you CHOSE to have multiple children with one or multiple partners. The government already provides women and men with free CONTRACEPTION and access to abortions and vasectomy for free. It is not the government's responsibility when you as a women CHOSE to be irresponsible...it's 2024, no one needs to be having 6 kids by one partners or multiple different partners.. You the woman and the man or men you chose to sleep with are responsible. How about instead of child support, use that money to pay for the women who knowingly to chose to have more than 2. If you can afford to have more than 2 then go ahead. But it's not up to people working 40+ hours per week paying taxes. For women to stay at home and pump out babies. That's not what I work for. You want them U pay for them..

[@martineyles]

On responsibility: You might choose to have a third child because you have a good job. A year later you might be made redundant. You then look for work, but can't find anything that pays as well, so rely on Tax Credits to top up your income. Your low income can be as a result of events out of your control after you took responsible decisions. On who suffers: The children didn't decide how many of them are in the family, yet they will be amongst those who suffer from poverty as a result of any limits or caps on benefits. Even if you ignore the first argument and accept that the parents were irresponsible, once they have been born, should they really be the ones to suffer?

[@JK_JK_JK_JK]

I agree I love cats but I don't want 5 or 10 of them because I can't afford that many and its not fair on them as I live in a small apartment!!! 🙄

[@martineyles]

@@Ray-555 Not if they don't smoke or gamble and they are struggling to afford food.

[@kinggeoffrey3801]

​@@martineylessorry that's part of the risk. I don't have kids, why should my taxes go on other peoples children? Pay for your own damn kids.

[@martineyles]

@@kinggeoffrey3801 I don't have kids either, but I also don't believe we should let kids starve.

[@dragosalincseplo1713]

With all my respect and I don’t want to upset anyone. UK military assistance The UK is one of the leading donors to Ukraine, alongside the US and Germany. To date, the UK has pledged £12.5 billion in support to Ukraine since February 2022, of which £7.6 billion is for military assistance. This includes £3 billion for military assistance in 2024/25. For your children is not affordable but for war in other countries is ok . 😊 I will not be amazed to see new PM to be appointed. 😊

[@whitestar182]

Helpful Info and i think this should have introduced a long time ago. Lot of people abusing the system and we tax payers suffer. I have seen number of cases myself in Glasgow. The parent work as a Cash only and take huge benefits more than a salary of executive just by sitting at home .Its so painful when we parents work day and night and pay taxes and raise our children just to find our tax money getting skimmed.

[@Oh_no_here_we_go_again]

If people want kids they should pay for the brats themselves

[@kiquine]

I get the feeling that the negative and angry comments made here are by people who didn't watch the video.

[@paul_my_plumbs_uk]

Are labour going to be give cost of living payments???

[@paul_my_plumbs_uk]

@@Ray-555 yes 😂😂😂 £1.75 single journey

[@misslanapaulford]

@@Ray-555 I know in Yorkshire and Manchester it runs out end of December. I don't know if they will renew it..

[@kevinsyd2012]

No. Labour has stopped this for good.

[@paul_my_plumbs_uk]

@@kevinsyd2012 that's about right kev

[@jojos853]

We are geting more like the us,more and more, this is what they do, the uk gone to the dogs.

[@BrianMartin-ox2ru]

Why is it the job of the taxpayer to fund other peoples children?

[@Bungle2010]

How empathetic of you. So your answer is what? Let families starve?

[@BrianMartin-ox2ru]

@@Bungle2010 My answer? LET THE PARENTS OF THE CHILD PAY FOR THE CHILD! Do you pay the tax and insurance for your neighbours car? Why not?

[@Bungle2010]

@@BrianMartin-ox2ru And who do you suggest they do that without enough income? And last I checked we DO pay tax so the government can use that tax too assist the less well off.

[@BrianMartin-ox2ru]

@@Bungle2010 Hey! When are you paying the tax and insurance for my cars? They are my legal and financial responsibility but why should I pay?..

[@Bungle2010]

@@BrianMartin-ox2ru Why the f are you going on about cars??

[@LeeEnfield-iw3qk]

Martin, please tell me this isnt true 😒.The Pensions Increase (Pension Scheme for Keir Starmer QC) Regulations 2013

[@JK_JK_JK_JK]

If you can't afford to have Kids then don't have them!!! 🙄

[@Patrick-y4d1z]

And then mass migration happens to prop up a collapsing population.

[@Bungle2010]

You people are unbelievable.

[@ReenalUpadhayay]

100% agree. We don't live in a third world country. Free contraception exists.

[@Bungle2010]

@@ReenalUpadhayay The complete lack of empathy is f'ing disgusting.

[@bushmonster1702]

@@Bungle2010 so should people have children willy nilly without any thought of what it means financially for them and children involved?

[@FreeFromStammering-s6u]

Fuck ..if i get more than 80000 gbp no child benifits...thats shit😢

[@czaarmy-u9g]

It's against the law what they have done no English royal family money for English people but there is alot of money for every single illegal migrant I don't understand that me

[@terryhunt9040]

Having day four kids is four more houses four more cars on our roads in our over populated country in the future

[@dinaworkman306]

Don't have kids if you cant afford them. They get free uniform. Free trips free meals.

[@rosyapplekitchen635]

Sadly the hardworking parents can’t afford to have any kids or more than 1-2. Whereas those on benefits no problem

[@Bungle2010]

And people on benefits aren't hardworking because?

[@danieljones5421]

Unfortunately we live in a world where circumstances change, people who were once doing alright and able to afford more children no longer are. The world is not black and white

[@misslanapaulford]

@@rosyapplekitchen635 I think there should be more incentives for people to go back to work once the child or child have access to free childcare and that should be extended for larger hours.

[@CindyRivas-i7u]

Boris Track

[@czaarmy-u9g]

They are treating children as conjoined twins like they sare there food it's against the law and not one English person as ever said anything about this

[@ThomasBoyd-lo9si]

Can get any lower then £28.95 per month no Thomas. Broadband and phone landline 24 month contract Talk Talk Salford England. Brilliant deal negotiation Thomas.

[@StevePiner-m6x]

Martin stop please tax and Bill get into the government please your better than tax gas child stop let someone else do this video get your suit on government reform need u

[@czaarmy-u9g]

Dont change anything they taken 130000 pounds from my family they pay for migrants daily but not my kids your all mad

[@JestersDeadUK]

I’m sorry, if you can’t afford kids, close your legs and get a tv, why should others have to pay for YOURS?!?! #SocialResponsibility

[@Patrickrealestate47]

My advice to everyone is this: if you want to grow big this year especially in your finances. Be willing to take risks. Saving is great but taking risks puts you on a pedestal where you wouldnt have to worry about savings as you do now. Thanks to Stacie Valadez-Cook, my portolio is doing really great and im proud of the decisions i made last year. I have no doubt inv esting more

[@NirutSanchaitxx]

What I like about her is her logic behind every undertaking, and her ability to make good profit regardless of the starting investment amount

[@Ruslancv]

She is all about simple technique that are highly profitable, I really admire her winning mentality.

[@Rodrickharvin]

I'm new to t rading, please how do I reach out

[@User551-23]

By her Tele-grams, below is her info

[@User551-23]

FxStacie, thats her username

[@axa2wa]

So, in summary, one step to simplify the tax system is to get rid of child benefit! After all, if you can't afford to have children, don't have them! And, if you do, you shouldn't expect the government to subside you. #MakeTaxSimple&Sensible

[@colfer222]

Parents should be made to pay for their own children.They had them, they pay for them....why should someone else.

[@skyrimnpchostile3572]

Those kids will grow up and won't be exempt from taxes or paying your pension... so why should they be disadvantaged for the rest of their life because you disagree with their parents choices?

[@colfer222]

@@skyrimnpchostile3572 The only disadvantage they have is parents who dontsupport them.I've been paying tax for over 60 years...they'll never support me.

[@ASI-l2w]

@@skyrimnpchostile3572Maybe the kids should ask the parents that very question when they grow up?

[@magawwisnia8982]

The culture where 15 years olds had babies for free house was bad, now when benefits are too small they cry for help. Why was it even allowed. You go to school, work, then kids when you are proper grown up. I don't feel sorry for people that wanted easy existence and it's hard to like people that never worked. Why people claim benefits in kids that are eleven, twelve, why oh why? Everyone has some skills and talents and should work. Whatever

[@skyrimnpchostile3572]

@@magawwisnia8982 and that describes every situation involving childeren and benefits does it? What about the almost 40 percent of universal credit recipients who have jobs, according to the yougov statistics? You have no idea what it's like for them, yet you're happy to put everyone in a neat category based on your outdated beliefs and no actual research on the matter.